Core Framework for MySuper Released
On 21 September 2011, the Government announced its decisions on key design aspects of the Stronger Super reforms. A key component of these reforms is the creation of a new single, low cost default superannuation product called MySuper.http://www.corrs.com.au/admin/?locale=en_GB#Root_Behaviour
On 29 September, the Government released draft legislation and an explanatory memorandum setting out the core framework for MySuper products.
The Superannuation Legislation Amendment (MySuper Core Provisions) Bill 2011 (draft legislation) makes amendments to the Superannuation Industry (Supervision) Act 1993 (SIS Act) and the Superannuation Guarantee (Administration) Act 1992 (SG Act).
The key components of the MySuper core framework are:
- a statutory requirement that default contributions be placed in MySuper products;
- authorisation of MySuper products by APRA;
- required core characteristics of MySuper products;
- permitted fees for MySuper products; and
- fee charging rules for MySuper products.
Subsequent tranches of legislation will address further elements of the Stronger Super reforms including the rules for the charging of financial advice, including intra-fund advice, trustee obligations in respect of insurance and rules for the fair and reasonable allocation of costs between MySuper and choice products within a fund.
The closing date for submissions on the draft legislation is 13 October 2011.